Business park rents grow 2.1% in 1Q24

Rents, however, may soften amidst elevated vacancies.

Business park rents recorded their fastest growth since 2Q17 in 1Q24, increasing by 2.1% QoQ.

In a report, Colliers attributed the pace of increase to newer and better-located business parks. 

Colliers, however, said there could be a softening of rents as vacancy remains elevated, especially in the outlying and older business parks,

With higher vacancies, the occupancy rate in 1Q24 declined 40bps to 78% 

"Overall, demand for business park spaces remained muted, with more renewals and occupiers right-sizing," Colliers said.

Colliers, however, believes leasing activity may pick up with new supply coming on stream in the later part of the year.